The influence of the government on corporate environmental reporting in China: An authoritarian capitalism perspective

This study uses panel data to investigate the different roles of the Chinese government in influencing companies’ decision making about corporate environmental reporting (CER) via a two-stage process. The results show that the Chinese government appears to mainly influence the decision whether to disclose or not, but has limited influence on how much firms disclose. The results also show that the traditional model of authoritarian capitalism (under which state-owned enterprises [SOEs] are the major governance arrangement) is transforming into a new model. In the new model of authoritarian capitalism, the Chinese government uses newer, more sophisticated tools to manage both state-owned and non–state-owned companies. In addition, these new governance arrangements appear to be more efficient than the traditional model. The findings of this study have implications for both the Chinese government and for Chinese companies, as well as making important contributions to the literature and knowledge of CER in China

The influence of the Chinese government\u27s political ideology in the field of corporate environmental reporting

© 2020, Hui Situ, Carol Tilt, Pi-Shen Seet. Purpose: In a state capitalist country such as China, an important influence on company reporting is the government, which can influence company decision-making. The nature and impact of how the Chinese government uses its symbolic power to promote corporate environmental reporting (CER) have been under-studied, and therefore, this paper aims to address this gap in the literature by investigating the various strategies the Chinese government uses to influence CER and how political ideology plays a key role. Design/methodology/approach: This study uses discourse analysis to examine the annual reports and corporate social responsibility (CSR) reports from seven Chinese companies between 2007 and 2011. And the data analysis presented is informed by Bourdieu\u27s conceptualisation of symbolic power. Findings: The Chinese government, through exercising the symbolic power, manages to build consensus, so that the Chinese government\u27s political ideology becomes the habitus which is deeply embedded in the companies\u27 perception of practices. In China, the government dominates the field and owns the economic capital. In order to accumulate symbolic capital, companies must adhere to political ideology, which helps them maintain and improve their social position and ultimately reward them with more economic capital. The findings show that the CER provided by Chinese companies is a symbolic product of this process. Originality/value: The paper provides contributions around the themes of symbolic power wielded by the government that influence not only state-owned enterprises (SOEs) but also firms in the private sector. This paper also provides an important contribution to understanding, in the context of a strong ideologically based political system (such as China), how political ideology influences companies\u27 decision-making in the field of CER

Umbrella protectors? Analysing valuing, hybridity and compromises for Chinese middle managers

Purpose: This paper examines the ways in which Chinese university middle managers evaluate subordinate performance in response to the Chinese Double First-Class University Plan, a national project that ranks the performance of universities. In exploring compromise arrangements, the hybridised valuing activity of middle managers is found to be shaped by emergent and extant macro-foundations. Design/methodology/approach: The qualitative data from 49 semi-structured interviews at five Chinese public universities were conducted. Drawing on macro-foundational studies and the sociology of worth (SW) theory, the analysis helps to identify socially shared patterns of actions and outcomes. Findings: The findings elucidate the interplay between diverse economic, social, political and institutional values and the compromise-making by middle managers. The authors find that contextual factors restrict Chinese academic middle managers' autonomy, preventing workable compromise. Through the selective adoption of international and local management practices, compromise has evolved into a private differential treaty at the operational level. Originality/value: A nuanced explanation reveals how the macro-foundations of Chinese society influence middle managers who engage with accounting when facilitating compromise. This study helps outsiders better understand the complex convergence and divergence of performance evaluative practices in Chinese universities against the backdrop of global market-based forces and the moral dimensions of organisational life. The findings have wider implications for the Chinese government in navigating institutional steps and developing supportive policies to enable middle managers to advance productive but also sustainable compromise

The influence of the Chinese government's political ideology in the field of corporate environmental reporting

PurposeIn a state capitalist country such as China, an important influence on company reporting is the government, which can influence company decision-making. The nature and impact of how the Chinese government uses its symbolic power to promote corporate environmental reporting (CER) have been under-studied, and therefore, this paper aims to address this gap in the literature by investigating the various strategies the Chinese government uses to influence CER and how political ideology plays a key role.Design/methodology/approachThis study uses discourse analysis to examine the annual reports and corporate social responsibility (CSR) reports from seven Chinese companies between 2007 and 2011. And the data analysis presented is informed by Bourdieu's conceptualisation of symbolic power.FindingsThe Chinese government, through exercising the symbolic power, manages to build consensus, so that the Chinese government's political ideology becomes the habitus which is deeply embedded in the companies' perception of practices. In China, the government dominates the field and owns the economic capital. In order to accumulate symbolic capital, companies must adhere to political ideology, which helps them maintain and improve their social position and ultimately reward them with more economic capital. The findings show that the CER provided by Chinese companies is a symbolic product of this process.Originality/valueThe paper provides contributions around the themes of symbolic power wielded by the government that influence not only state-owned enterprises (SOEs) but also firms in the private sector. This paper also provides an important contribution to understanding, in the context of a strong ideologically based political system (such as China), how political ideology influences companies' decision-making in the field of CER

Sustainable development goal reporting: Contrasting effects of institutional and organisational factors

Businesses are increasingly expected to disclose their progress towards sustainable development via engagement with the United Nations Sustainable Development Goals. Although there is increasing trend towards disclosure, corporate reporting on Sustainable Development Goals varies in content and quality, posing a challenge to assess and improve the quality of disclosure. To understand variation in Sustainable Development Goal disclosure, it is essential to examine significant factors influencing corporate reporting. Accordingly, this research aims to investigate key drivers of reporting. The study undertakes content analysis of sustainability reports from leading Australian companies and conducts multinomial logistic regression analysis to provide evidence on drivers of disclosure. Using institutional theory and agency theory, a set of hypothesised relationships between Sustainable Development Goal disclosures and determinants of disclosure are developed. The study finds that Sustainable Development Goal reporting practices are a developing trend driven by external institutional factors and organisational characteristics. The study concludes there is need for a more robust Sustainable Development Goal measurement and reporting framework that can support companies to align their business strategies with the goals. This research makes several contributions to the literature by providing empirical evidence on the determinants of specific attributes of Sustainable Development Goal disclosure; empirical insights into potential motives for Sustainable Development Goal reporting; and a unique disclosure quality index that will be useful to academics and practitioners interested in assessing and ranking Sustainable Development Goal disclosures

Integrated Sustainability Framework for SDG Governance and Reporting

This report provides evidence on the factors affecting the uptake, management and disclosure of SDGs from a multi-stakeholder perspective. Our study draws on the lived experiences of 30 participants who have knowledge and governance expertise on sustainability across business, non-profit, accounting profession and management consultancy areas. In-depth participant interviews and two focal group discussions formed the basis for capturing the perceptions, attitudes and insights of expert governance stakeholders such as CEOs, corporate sustainability officers (CSOs), CFOs /management accountants, professional consultancy experts, and related knowledge experts on sustainability. Data analysis is guided by integrated management systems thinking as set out in the UN Global Compact Integrated Sustainability Roadmap (UNGC, 2015) where alignment across the strategic, operational and cultural dimensions within different functional units are seen as critical for effective corporate sustainability. The findings of this study highlight the importance of the role of information and knowledge management systems and the under-tapped capacity of accounting systems for SDG integration. A more holistic framework, titled, “Integrated Sustainability SDG Governance and Reporting Framework”, is proposed for guiding business support of the 2030 Agenda on sustainable development

SDG measurement and disclosure 3.0: a study of ASX150

This report, led by an RMIT University research team and developed in collaboration with CPA Australia, provides an analysis of the Sustainable Development Goals (SDG) disclosure practices in 2020 by the top 150 Australian public-listed companies (ASX150) (by market capitalisation as at 1 July 2019). It is the third report in the ‘SDG Measurement and Disclosure’ by ASX150 series of reports and includes analyses of SDG disclosure trends over a three year period (2018 to 2020). The analysis is based on data from corporate annual sustainability reports, and assesses the extent of SDG awareness, commitment and governance support mechanisms and management approaches to sustainability disclosed by the ASX150. The report aims to build on the evidence gathered over the two preceding years with a view to identifying the performance and emergent strategies towards sustainable development of the sample ASX150. It also lists the Top 20 performing companies in terms of SDG disclosure in the 2020 reporting period